SKT - Sky Network Television

[Mysterion]

C, mon mistatea. I normally enjoy you analysis but since you sold you become a negative Nancy.

[Mysterion]

[mistaTea]

C, mon mistatea. I normally enjoy you analysis but since you sold you become a negative Nancy.

As long as nobody tries to say I didn't warn them later on...

[Mysterion]

As long as nobody tries to say I didn't warn them later on...

What are your thoughts on Bowman buying KMD but not Sky?

You would be all over that before, surely?

[mistaTea]

What are your thoughts on Bowman buying KMD but not Sky?

You would be all over that before, surely?

I don't think much of him. The cold reality is Bowman has overseen Sky being run into the ground - operating cashflows were still around $300M when he took over.

Then it didn't help that Martin - though he had some decent ideas in some areas - was terrible at capital allocation.

Now we have a lawyer with a mullet more interested in having a korero and pushing the feminist agenda than shareholder returns. She hasn't a clue about capital allocation either, given she was going to buy MW until shareholders gave her a verbal slapping.

...with respect to the purchase of KMD shares? Management and Board ownership levels of Sky TV has been a concern for a long time - and this goes back even to the John Fellet and Peter Macourt days.

Maybe management and the board will buy some more if it gets cheap enough. But given they can see the difficulties ahead for Sky - some of those materialising in the relatively short term - I doubt any of these guys are going to be rushing in anytime soon to put a big % of their net worth in Sky TV.

Bowman could have bought 1% of the company just from the proceeds from the sale of one of his NZ properties. But he didn't.

[Mysterion]

https://www.nzherald.co.nz/business/streaming-service-amc-launches-in-nz-how-it-shapes-up/PBWJMFXDMS4AGI4RJB4EWJ6Y7E/

Sky's problem, though, will be whether the horse has already bolted, given the number of households that have already upgraded to smart TVs that offer easy access to the various streaming services.

And, more, the rise and rise of direct-to-consumer apps. At some point, HBO and others might want to follow Disney and make their own global streaming services the exclusive home of their content, without anyone else clipping the ticket.

Sky's plan will be to focus on being the king of convenience for access to entertainment content, and to hold on tight to local sports rights.

[winner (n)]

here's Sophie charming the guy from Craigs

https://craigsip.com/insights/overview/2022/09/sophie-molony-ceo-interview

[mistaTea]

here's Sophie charming the guy from Craigs

https://craigsip.com/insights/overview/2022/09/sophie-molony-ceo-interview

Nice soft ball questions.

Confirmed that Sky will pay through the nose to try to keep some deals exclusive. Ouch.

Warner-Doscovery should do very well at the next negotiation.

The quixotic aspiration of having all sport content under the Sky banner...well, that would be a first for Sky if it ever happened. Sky has never had the rights to all of the content...and her plan to get there sounds...expensive...

[Mysterion]

Resolution 2

[Mysterion]

Key risks
The Board considers the Scheme to be low risk, given it involves the
return of capital to shareholders.
There is a risk that if additional capital were needed to be raised in
the medium term for some reason, the costs of such raising could
have been avoided had the Scheme not been implemented. For
example, in the event that a major acquisition were to be considered
by the Company this may require equity funding. The Board
consider this risk is low as there are no imminent opportunities
that the Board is aware of that would suggest that maintaining
a large surplus of cash is appropriate. The Scheme is sized so that
the Company retains the ability to reinvest for future growth and
maintain a degree of financial flexibility to absorb unexpected
changes in trading performance in the short term.

[mistaTea]

Spark now offering packages for business?

Hmmmn, maybe they aren't planning to throw in the towel just yet after all.

Which means Sky are going to continue to pay an absolute fortune for sports. Unless Sky offer NZR another very generous sum during the exlusive talk period next year they will want to go out to market and see what Spark have to say.

With wireless and satellite internet options becoming more available now, the advantage Sky hold with NZR by being able to broadcast content by satellite will be significantly reduced by the time the next rugby contract begins in 2026.

I do think Sky will ultimately hang on to the rugby rights at a big cost...however it is also fair to say that Spark have a better chance of getting it this time than they did last time. Streaming was just too much of an unknown for the oldies at NZR at the time, where as Sky was tried and true. Spark have led the charge on sport streaming, and the service is very reliable now. The fact that Sky's biggest growth area in sport has been SSN confirms that.

Yes, I see many dark clouds brewing in the distance.

[Mysterion]

and maintain a degree of financial flexibility to absorb unexpected changes in trading performance in the short term.

absorb = take up money (resources) to secure key programming rights due to unexpected price increases

[mistaTea]

I also note that on 19 July Sky advised the market that they were in 'advanced' talks with World Rugby about the next RWC.

Two and a half months later and no announcement on a deal? How advanced were these talks then?

If Spark are not planning to throw in the towel (perhaps hoping for a chance to bid for NZR next year before considering calling it quits?) then it is possible they have come in with a solid bid to renew the RWC rights. The initial issues they had in the men's tournament have well and truly been sorted out and Spark are currently gearing up for the women's tournament.

Sky will want to sell RP to world rugby regardless of a deal to acquire the RWC I think.

Lot's of specualtion about Spark throwing in the towel (including from me) but they may well be gearing up to have the last laugh.

[mistaTea]

absorb = take up money (resources) to secure key programming rights due to unexpected price increases

Yes they will need every penny they have when NZR and Warner-Disco have them over a barrel at the next round of negotiations.

Damn you, I say at market cap $366M Sky is still at least $50M overvalued!

[Mysterion]

I also note that on 19 July Sky advised the market that they were in 'advanced' talks with World Rugby about the next RWC.

Two and a half months later and no announcement on a deal? How advanced were these talks then?

If Spark are not planning to throw in the towel (perhaps hoping for a chance to bid for NZR next year before considering calling it quits?) then it is possible they have come in with a solid bid to renew the RWC rights. The initial issues they had in the men's tournament have well and truly been sorted out and Spark are currently gearing up for the women's tournament.

Sky will want to sell RP to world rugby regardless of a deal to acquire the RWC I think.

Lot's of specualtion about Spark throwing in the towel (including from me) but they may well be gearing up to have the last laugh.

WBD could look to buy Spark Sport. That would be a game changer.

HBO and Spark Sport combo from one provider would be nice. That same provider also has free to air channel as well. They could release their own set top box or app etc.